A Pune-based civil engineering, manufacturing and construction company that makes pre-stressed concrete sleepers for railways and mild steel pipes for hydro and irrigation projects is raising Rs 178 crore through a mainboard issue.
Vishal Nirmiti is a civil engineering, manufacturing and construction company. Its main business is making and selling Pre-Stressed Concrete (PSC) sleepers for railways.
It also makes precast and prestressed concrete products and fabricates and erects Mild Steel (MS) pipes, MS liners and penstock pipes for pumped storage projects. The company was incorporated in 1994.
VNL provides engineering, procurement, infrastructure and construction services for railway infrastructure and for civil engineering, irrigation and infrastructure projects in the railway, renewable power and industrial sectors.
The company operates in Maharashtra, Madhya Pradesh, Gujarat, Himachal Pradesh, Odisha, Delhi, Punjab and Karnataka, through units that it owns, leases, has been allotted or uses on a job-work basis.
It holds ISO 9001:2015 certifications for PSC sleeper manufacturing at its Bankhedi (Madhya Pradesh), Kandrori (Himachal Pradesh) and Mohol (Maharashtra) units. It also holds ISO 9001:2015 certifications for MS pipe and structural fabrication at its Raigad (Maharashtra) unit and corporate office, and for MS pipe manufacturing at its Kukshi (Madhya Pradesh) unit, which additionally holds ISO 45001:2018 for occupational health and safety.
The company specialises in on-site fabrication of large-diameter MS pipes using automatic longitudinal submerged arc welding, which reduces logistics and transport costs.
Alongside fabrication, it applies anti-corrosive and protective coatings such as sand blasting, painting, cement mortar lining and guniting. Its main product is circular hot-rolled MS pipe up to 7,500 mm in diameter, with wall thickness from 3 mm to 36 mm.
These pipes are used in general infrastructure, hydropower, lift irrigation and water supply projects. As of June 30, 2026, the company had 420 employees and 805 contract workers.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 30, 2026 |
| Issue Closes | October 5, 2026 |
| Allotment (expected) | October 6, 2026 |
| Listing | BSE and NSE (Mainboard) |
| Listing Date (tentative) | October 8, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 208 – Rs 220 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 178.00 crore (80,90,909 shares) |
| Fresh Issue | 65,90,909 shares (Rs 145.00 crore) |
| Offer for Sale | 15,00,000 shares (Rs 33.00 crore) |
| Lot Size | 68 shares |
| Min. Retail Investment | Rs 14,960 |
| Post-IPO Market Cap | Rs 580.60 crore |
| IPO as % of Post-IPO Capital | 30.66% |
| Book Running Lead Manager | Saffron Capital Advisors Pvt Ltd |
| Registrar | MUFG Intime India Pvt Ltd |
| Syndicate Member | Prabhat Financial Services Ltd |
The issue allocates not more than 1% to QIBs, not less than 29% to HNIs and not less than 70% to retail investors. The OFS is by promoter group entity Vaman Prestressing Company.
From the net proceeds of the fresh issue, VNL will use Rs 75.00 crore for working capital and Rs 19.00 crore to repay or prepay certain borrowings, with the rest going to general corporate purposes.
Post-IPO, paid-up equity capital rises from Rs 19.80 crore (1,98,00,000 shares) to Rs 26.39 crore (2,63,90,909 shares).
Price Band
At the Rs 220 upper band, with FY26 earnings attributed to the fully diluted post-IPO equity, the issue is valued at a P/E of 23.26x, or 24.55x on FY25 earnings. The P/BV is 5.04 on the March 31, 2026 NAV of Rs 43.61, and 2.51 on the post-IPO NAV of Rs 87.66. The post-IPO market cap is Rs 580.60 crore.
Analysts consider the issue aggressively priced, but say well-informed or cash-surplus investors may park funds for the long term.
GMP
The Vishal Nirmiti IPO GMP is ₹6, about 2.7% over the upper band, which indicates a listing price of around ₹226. The GMP has ranged from ₹0 to ₹6 since September 28.
GMP is unofficial, unregulated and unendorsed.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 247.93 | 324.86 | 344.13 |
| Net Profit (PAT) | 3.45 | 23.64 | 24.98 |
| PAT Margin (%) | 1.42 | 7.42 | 7.37 |
| RoCE (%) | 14.60 | 30.32 | 28.02 |
Total income rose from Rs 247.93 crore in FY24 to Rs 324.86 crore in FY25 and Rs 344.13 crore in FY26. Net profit rose from Rs 3.45 crore in FY24 to Rs 23.64 crore in FY25 and Rs 24.98 crore in FY26.
The PAT margin increased from 1.42% to 7.42% in FY25 and was 7.37% in FY26. RoCE went from 14.60% to 30.32% and then 28.02%. Analysts question whether the improved FY25 and FY26 profits can be sustained.
Trade receivables rose from Rs 37.18 crore in FY24 to Rs 63.21 crore as of March 31, 2026. Contingent liabilities stood at Rs 21.87 crore on the same date.
Over the last three fiscals, the company reported an average EPS of Rs 10.58 and an average RoNW of 34.39%. It hasn’t paid any dividends during the reported periods, and it adopted a dividend policy in September 2025.
Peer Comparison
| Company | P/E (x) |
|---|---|
| Vishal Nirmiti (FY26, post-IPO) | 23.26 |
| GPT Infra | 14.9 |
| Indian Hume Pipes | 19.5 |
Risks to Consider
Profit jump and sustainability. Net profit rose from Rs 3.45 crore in FY24 to Rs 23.64 crore in FY25, and the PAT margin climbed from 1.42% to 7.42%. Analysts question whether this level of profit can be sustained.
Rising receivables. Trade receivables increased from Rs 37.18 crore in FY24 to Rs 63.21 crore as of March 31, 2026, and Rs 75.00 crore of the proceeds is earmarked for working capital.
Contingent liabilities. Contingent liabilities of Rs 21.87 crore as of March 31, 2026 compare with FY26 net profit of Rs 24.98 crore.
Dependence on infrastructure spending. The business serves railway, hydropower, irrigation and water supply projects, so revenue depends on order flow from these sectors.
Multi-location operations. The company runs owned, leased, allotted and job-work units across eight states and relies on 805 contract workers alongside 420 employees.
Valuation and OFS. The issue is priced at 5.04 times pre-IPO book value and 24.55 times FY25 earnings. A promoter group entity is selling 15,00,000 shares through the OFS, and the promoters’ and selling shareholders’ acquisition costs range from nil to Rs 31.82 per share.
This article is for informational purposes and is not personalised investment advice; investors should do their own due diligence or consult a SEBI-registered adviser before acting.
